Office of Data Protection Commission Goes After 40 Digital Lenders For Breaching Privacy
The head of data protection commission, Kassait goes after 40 digital lenders for breaching privacy.
The Data Commissioner is auditing 40 digital lenders, among them Branch, Zenka and Tala, over misuse of customers’ data, following complaints from the public.
The Office of the Data Protection Commission said it had received several complaints from the public concerning how 40 digital lenders handle their private data.
The ODPC said it is carrying out a preliminary documentary assessment and audit on the mentioned lenders.
Other listed digital lenders under investigation are Wakanda Credit/Kashway, Direct Cash, Flexi Cash, IKASH Connect, M-Credit, Lemon Cash, Sky Pesa and Senti.
Data Commissioner Immaculate Kassait, has given the digital lenders a week’s time to provide required documents for the audit.
Data Protection Regulations 2021 paved way for clients to file complaints against digital lenders who breach data privacy to the Data Commissioner.
People have complained of being phoned by credit collectors who are rude to them after their relatives or friends failed to service their loans.
This action comes barely 2 weeks after CBK licensed only 10 Digital Lenders, leaving out many others for not meeting the requirements for licensing.
“We urge the credit providers to address issues that we have pointed out to them. We will not provide them with a licence unless they actually adhere to the specific requirements as per the Act. One of the things that are very clear is that we need to be clear on how they deal with their customers and assurance that their collection habits or methods are ethical. It is their business model that we are interested in,” said Dr Njoroge.
